DEVELOPMENT BANK UNDER DODIK'S ATTACK From the Banking Agency, it is clear: Technical issues must not jeopardize the strategic importance of institutions

By A. Čorbo-Zećo

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Escalating technical issues must not jeopardize the strategic importance of any institution at the entity or state level. We believe that issues concerning the role of development banks can be resolved within the frameworks of competent institutions, while other supervisory and regulatory challenges must be treated with full respect for the role of development banks, and in relation to valid laws, the Banking Agency of FBiH told Patria, regarding the efforts of certain members of the Supervisory Board of the Central Bank of BiH to transform the Development Bank of FBiH into a fund.

“The business objectives and activities of the Development Bank of the Federation of BiH are determined by the Law on the Development Bank of the Federation of Bosnia and Herzegovina. The bank's capital is 100% owned by the Federation of BiH,” the Banking Agency further emphasizes.

When it comes to the issue of the bank's management and business model, the Agency states that these are within the jurisdiction of the Government of the Federation of BiH, i.e., the Bank's Assembly.

“The Banking Agency of the Federation of BiH supports any activity aimed at strengthening the bank, as well as achieving a high degree of efficiency. We appreciate that the previously established technical arrangements are in line with the legal framework and the actual needs of the bank's business and activities. Any subsequent limitation or change in the business model must be considered, which also includes the positions of the bodies competent for the bank's operations,” the Banking Agency of FBiH stated.

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Dodik is suffocating the Development Bank of the Federation, the bank says we respect the Constitution of FBiH and we were founded by law!

Representatives of SNSD in the Supervisory Board of the Central Bank of BiH are trying to turn the Development Bank of FBiH into a fund!

We remind you that SNSD representatives appointed to the Supervisory Board of the Central Bank of BiH are trying in every way to remove the Development Bank of FBiH from the mandatory reserve allocation system, in which it has been since 2008.

This essentially means transforming the Development Bank of FBiH into a fund, in the same way that the IRB in RS is organized, which operates through commercial banks.

This further means that the Development Bank would lose its SWIFT code, would not be able to disburse favorable credit lines directly to beneficiaries (primarily small and medium-sized enterprises), and if it went through commercial banks, it would significantly affect users.

At the same time, the entire operation of the Development Bank, which has been unchanged since 2008, would be called into question.